Technology and Innovation Risks - The company is incorporating generative AI technology into certain solutions and services, which may present operational, financial, and reputational risks due to the emerging regulatory environment [124] - The introduction of new technologies, such as AI, could render existing solutions obsolete, impacting the company's market competitiveness [116] - The company’s reliance on third-party service providers for AI features may expose it to legal liabilities and reputational harm if personal data is improperly processed [125] - The company’s generative AI features may produce misleading or harmful outputs, which could lead to reputational damage and legal liabilities [126] - The company faces risks associated with the use of third-party technologies, which could delay solution development and harm business operations [139] Competition and Market Dynamics - The company faces intense competition for highly qualified personnel, which could impact its ability to support planned growth if key personnel cannot be attracted or retained [117] - The company has experienced significant competition, which may limit pricing power and affect customer adoption and renewal of solutions [115] - The market for software and services in the social impact community may not grow as expected, potentially limiting the adoption of the company's solutions [119] - Negative media coverage related to peer-to-peer fundraising campaigns could adversely affect user engagement and revenue [131] Financial Performance and Revenue - GAAP revenue for 2024 was $1,155.5 million, representing a 4.5% increase from $1,105.4 million in 2023 [321] - Non-GAAP organic revenue for 2024 was $1,155.5 million, with a growth rate of 5.2% compared to $1,098.0 million in 2023 [321] - Non-GAAP adjusted EBITDA for 2024 was $388.9 million, with a margin of 33.7% [327] - GAAP net loss for 2024 was $283.2 million, compared to a net income of $1.8 million in 2023 [327] - Non-GAAP diluted earnings per share for 2024 was $4.07, up from $3.98 in 2023 [327] - A significant portion of revenue is derived from transaction-based payment processing fees, and a decline in charitable giving could negatively impact these revenues [138] Security and Compliance Issues - The company has received approximately 260 specific requests for reimbursement related to a security incident, with ongoing litigation in U.S. federal courts [150][152] - Compliance with cybersecurity and data protection requirements is expected to be expensive and time-consuming, with potential material liability for non-compliance [154] - The company is subject to various lawsuits and governmental inquiries related to the Security Incident, which may result in additional expenses and liabilities [157][174] - Compliance with Payment Card Industry Data Security Standards (PCI DSS) is critical for the company, as failure to comply may result in fines and harm its reputation [171] - Privacy and data protection concerns may adversely affect demand for the company's software solutions, particularly in light of evolving regulations [185] International Operations and Currency Risks - The company is expanding its international operations, particularly in India, to access talent and increase employee numbers, although it does not expect to generate revenue in India in the foreseeable future [129] - The expansion of international operations has increased exposure to foreign currency exchange rate fluctuations, which could impact financial results [130] - Approximately 14% of total revenue for 2024 was generated from operations outside the U.S., with foreign currency translation increasing total revenue by $3.0 million and income from operations by $1.1 million [376][377] Acquisitions and Impairment - The company has faced challenges in integrating acquisitions, such as the acquisition of EVERFI, Inc., which resulted in a material noncash impairment charge in December 2024 [135] - The company recorded $405.4 million in impairment and disposition charges related to the EVERFI acquisition in 2024 [327] - The divestiture of EVERFI on December 31, 2024, contributed to the decrease in deferred revenue [306] Tax and Regulatory Considerations - The effective income tax rate decreased in 2024 compared to 2023, primarily due to a valuation allowance against U.S. deferred tax assets [313] - The company recorded a valuation allowance against all U.S. deferred tax assets in excess of deferred tax liabilities as of December 31, 2024, due to cumulative pretax losses [310] - The company is subject to periodic audits by domestic and foreign tax authorities, which can impact tax positions [387] Financial Obligations and Capital Management - The company’s total borrowing capacity increased from $1.1 billion to $1.5 billion under the 2024 Credit Facilities [176] - The stock repurchase program was re-initiated in Q4 2023 after a two-year hiatus, but there is no guarantee it will enhance long-term shareholder value [181] - The company repurchased $418.0 million of its common stock in 2024, a significant increase from $18.8 million in 2023 [353] - Total contractual obligations as of December 31, 2024, amounted to $1.581 billion, with $168.7 million due within one year [366] Operational Risks - The company is subject to various operational risks, including cybersecurity threats that could adversely affect its reputation and financial results [145] - The company continues to face risks related to defects or errors in its software, which could lead to significant costs and damage to its reputation [166] - The company’s operations and financial performance may be impacted by climate change and natural disasters, affecting its data centers and business continuity [159]

Blackbaud, Inc. (BLKB) reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of $1.08, which was in line with the Zacks Consensus Estimate. The bottom line decreased 5.3% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Total revenues jumped 2.5% year over year to $302.2 million. The top line missed the Zacks Consensus Estimate by 0.9%.Total recurring revenues (contributed 98% to total revenues) in the reported quarter amounted to $296.2 million, up 3.1% year ...

Core Viewpoint - Blackbaud has partnered with Nacional Monte de Piedad to enhance corporate giving and grant processing to vetted charities in Mexico, enabling companies to facilitate employee donations and corporate grants effectively [1][2][4]. Group 1: Partnership Details - The partnership allows Blackbaud's corporate clients to utilize the YourCause CSRconnect® and GrantsConnect® platforms for employee giving and corporate gift matching in Mexico [2][4]. - Employees in Mexico will be able to donate to local charities in their home currency and receive tax benefits, enhancing the appeal of corporate social responsibility initiatives [2][4]. Group 2: Platform Capabilities - Blackbaud's YourCause platform connects companies and employees to millions of nonprofits globally, facilitating employee giving, volunteering, grantmaking, and impact reporting [3][4]. - The platform supports engagement in over 170 countries, with 26 languages and 172 currencies available, making it a comprehensive solution for corporate social impact [5]. Group 3: Compliance and Security - Blackbaud has engaged in extensive vetting to ensure compliance with U.S. regulations and local laws for the movement of foreign charitable funds, partnering with Nacional Monte de Piedad to process donations securely [4][5]. - Nacional Monte de Piedad will vet charities and facilitate cross-border funds, ensuring that donations reach trusted organizations in key areas such as health, education, and food security [5][9]. Group 4: Company Background - Blackbaud is a leading software provider dedicated to social impact, with over $100 billion raised, granted, or managed through its platforms annually [7]. - Nacional Monte de Piedad has a 250-year history of improving lives through financial services and social investment, focusing on reducing inequality and promoting sustainable development in Mexico [9].

Group 1 - The article discusses the significant changes brought by President Trump's executive orders in early 2025, indicating a broad remaking of the executive branch and cultural shifts across various sectors [1] - Gary Alexander, with extensive experience in technology companies and startups, has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1] Group 2 - The article does not provide any specific financial data or performance metrics related to companies or industries [2][3]

Financial Data and Key Metrics Changes - For the full year 2024, Blackbaud produced revenue of $1,155 million, with an adjusted EBITDA margin of nearly 34% and non-GAAP diluted earnings per share of $4.07, reflecting a significant improvement from previous years [14][24] - The company's organic growth rate increased from 1.2% in 2020 to 5.2% in 2024, while the adjusted EBITDA margin improved from 26.5% to 33.7% during the same period [17][24] - Adjusted free cash flow for 2024 was approximately $245 million, representing a margin of 21.2%, up from 19.3% in 2023 [15][24] Business Line Data and Key Metrics Changes - Revenue in the social sector grew by 7% in 2024, with contractual recurring revenue increasing by 8% and transactional recurring revenue growing by 6% [14][24] - The divestiture of the Everfi business, which was dilutive to revenue growth and profitability, was completed on December 31, 2024, allowing the company to focus on its core business [7][8] Market Data and Key Metrics Changes - The company reported a gross dollar retention rate of approximately 92%, excluding Everfi, indicating strong customer satisfaction and loyalty [15] - The anticipated impact of currency fluctuations is expected to negatively affect revenue and adjusted EBITDA by $2 million to $3 million for the year [32] Company Strategy and Development Direction - Blackbaud aims to become a Rule of 45 company by 2030, focusing on mid single-digit organic revenue growth and improving operational efficiencies [18][40] - The company is investing in AI initiatives, including the Blackbaud Copilot, which enhances customer interactions and operational efficiencies [12][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive revenue growth and profitability despite potential challenges in the macroeconomic landscape [19][22] - The company expects to continue its stock repurchase program, targeting the buyback of 3% to 5% of outstanding shares in 2025 [20][36] Other Important Information - The company plans to invest in product innovation and refine its go-to-market strategies to maximize new logo acquisition and expansion within its customer base [26][36] - A one-time cash release payment of $28 million was made in connection with the lease for office space acquired as part of the Everfi acquisition, which is expected to improve adjusted EBITDA by $3 million to $3.5 million annually going forward [28][36] Q&A Session Summary Question: What are the biggest opportunities for new market growth in 2025? - Management indicated a shift in focus towards net new logos, particularly in K-12 education and other verticals, with expectations for increased bookings [42][45] Question: How does the company view the impact of federal dollar allocation changes on its customers? - Management noted that they have not seen any significant impact yet, as their platforms primarily drive donations through individual donors rather than federal funding [54][56] Question: Can you elaborate on the factors affecting the free cash flow guidance for 2025? - Management highlighted several impacts, including a $28 million one-time lease buyout, investments in India, and increased interest expenses due to stock repurchases [58][61] Question: How does the company plan to achieve the Rule of 45 target by 2030? - Management discussed a mix of cost savings, operational efficiencies, and leveraging AI to drive productivity as key strategies to reach this target [66][70] Question: How is the company's data impacting AI development opportunities? - Management emphasized the extensive data available within the industry, which is being utilized to enhance AI capabilities and drive revenue growth through improved customer interactions [75][78]

Company Performance - Blackbaud reported quarterly earnings of $1.08 per share, matching the Zacks Consensus Estimate, but down from $1.14 per share a year ago [1] - The company posted revenues of $302.23 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.87%, compared to $295.01 million in the same quarter last year [2] - Over the last four quarters, Blackbaud has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Movement and Outlook - Blackbaud shares have increased approximately 8.1% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The future performance of Blackbaud's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.98 on revenues of $292.03 million, and for the current fiscal year, it is $4.50 on revenues of $1.22 billion [7] Industry Context - The Computer - Software industry, to which Blackbaud belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Blackbaud's stock performance [5]

Blackbaud Investor Presentation Ticker: BLKB February 18, 2025 Forward-looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation consist of, among other things, statements regarding future operating results, all of which are based on current expectations, estimates, and forecasts, and the beliefs and as ...

Revenue Performance - GAAP total revenue for Q4 2024 was $302.2 million, up 2.4% year-over-year, while non-GAAP organic revenue increased by 3.2%[6] - For the full year 2024, GAAP total revenue was $1.2 billion, up 4.5%, with non-GAAP organic revenue increasing by 5.2%[10] - Total revenue for Q4 2024 was $302.232 million, a slight increase from $295.011 million in Q4 2023, representing a year-over-year growth of 0.4%[31] - Recurring revenue for the year ended December 31, 2024, reached $1.129 billion, up from $1.072 billion in 2023, indicating a growth of approximately 5.4%[31] - GAAP revenue for Q4 2024 was $302,232 thousand, representing a 2.4% increase from $295,011 thousand in Q4 2023[40] - Non-GAAP organic revenue for Q4 2024 was $302,232 thousand, with a growth rate of 3.2% compared to $292,798 thousand in Q4 2023[40] Profitability and Loss - GAAP net loss for Q4 2024 was $330.8 million, including pre-tax EVERFI impairment charges of $405.4 million, resulting in a diluted loss per share of $6.74[6] - The company reported a net loss of $330.764 million for Q4 2024, compared to a net income of $5.399 million in Q4 2023, reflecting a significant decline in profitability[31] - Non-GAAP net income for the year ended December 31, 2024, was $210,671 thousand, slightly down from $213,631 thousand in 2023[40] - GAAP net loss for Q4 2024 was $(330,764) thousand, compared to a net income of $5,399 thousand in Q4 2023[40] Operating Metrics - GAAP recurring revenue reached $296.2 million, representing 98% of total revenue, with a 3.1% increase compared to Q4 2023[6] - Non-GAAP adjusted EBITDA for Q4 2024 was $102.2 million, reflecting a margin of 33.8%, an increase of 20 basis points[6] - The company achieved a GAAP operating cash flow margin of 24.3% in Q4 2024, an increase of 2,540 basis points year-over-year[6] - Non-GAAP adjusted EBITDA for Q4 2024 was $102,242, reflecting a margin of 33.8%, slightly up from 33.7% in Q4 2023[45] - The company reported a GAAP operating cash flow margin of 25.6% for the year 2024, an increase from 18.1% in 2023[51] Cash Flow and Expenses - Blackbaud's non-GAAP adjusted free cash flow for 2025 is anticipated to be between $185 million to $195 million[13] - Cash and cash equivalents increased to $67.628 million as of December 31, 2024, from $31.251 million at the end of 2023, marking a growth of 116.4%[29] - Operating expenses surged to $531.505 million in Q4 2024, compared to $126.862 million in Q4 2023, primarily due to the $405.360 million expense related to the EVERFI disposition[31] - Non-GAAP free cash flow for the year ended December 31, 2024, was $228,768, with a margin of 19.8%, compared to $135,506 and 12.3% in 2023[51] Future Guidance and Plans - Blackbaud plans to repurchase 3% to 5% of its total outstanding shares in 2025, following a 10% repurchase in 2024[7] - Blackbaud's 2025 financial guidance includes expected GAAP revenue of $1.115 billion to $1.125 billion, with organic revenue growth projected at 4.5% to 5.4%[13] - Non-GAAP net income for 2025 is projected to be $210.7 million, with diluted earnings per share expected to be $4.07, an increase of $0.09[13] Balance Sheet and Liabilities - Total assets decreased to $2.496 billion in 2024 from $2.912 billion in 2023, a decline of approximately 14.3%[29] - The company's total liabilities increased to $2.354 billion in 2024, up from $2.104 billion in 2023, representing a rise of about 11.9%[29] Key Performance Indicators - The Rule of 40 metric, which combines non-GAAP organic revenue growth and adjusted EBITDA margin, is a key performance indicator for evaluating the company's financial health[26] - The Rule of 40 metric for Q4 2024 was 37.0%, down from 38.9% in Q4 2023[45]

CHARLESTON, S.C., Feb. 18, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its fourth quarter and full year ended December 31, 2024."2024 is a reflection of our successful work in solidifying Blackbaud's attractive and improving financial model over the past five years where our revenue, cash flows and Rule of 40 metrics have all improved significantly," said Mike Gianoni, president, CEO and vice chairman of th ...

Hundreds of Thousands of U.S. Charities Can Now Receive Cryptocurrency Donations through JustGivingCHARLESTON, S.C., Feb. 12, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced that it is enabling cryptocurrency donations to U.S. nonprofits through its JustGiving platform for peer-to-peer fundraising.Cryptocurrency donations are already seamlessly integrated into all JustGiving fundraising pages in the U.K., and this feature is now ext ...